From July 1, 2026, millions of Australian households in New South Wales, South Australia, and South-east Queensland will gain access to a federally mandated Solar Sharer Offer (SSO), providing at least three hours of free electricity daily during midday. This initiative, designed to leverage Australia’s abundant daytime solar generation, aims to reduce energy costs and ease grid pressure. The offer is set to expand nationally by 2027.
This comprehensive 2026 guide explains how the Solar Sharer Offer works, who is eligible, and crucially, how you can maximise your savings by strategically combining it with solar panels, home batteries, and smart energy management.
What is Australia’s Solar Sharer Offer (SSO)?
The Solar Sharer Offer is a new regulated electricity offer introduced by the Australian Government. It requires energy retailers to provide customers with at least three hours of free electricity in the middle of the day. This period aligns with when rooftop solar systems across the country generate the most power, often leading to low or even negative wholesale electricity prices.
Who is eligible?
Crucially, the SSO is available to all households, regardless of whether they have rooftop solar panels installed. The primary requirement is a smart meter, which allows your energy retailer to accurately track your electricity consumption during the designated free period. Most homes without a smart meter can request one from their energy retailer, and in many cases, it will be installed for free.
When does it start and where?
The Solar Sharer Offer commences on July 1, 2026, initially rolling out in:
- New South Wales
- South Australia
- South-east Queensland
The government plans to consult with other states and territories with a view to extending the offer nationally by 2027.
“Australia has more rooftop solar capacity than the entire fleet of remaining coal fired power stations across the country. This abundant power makes wholesale daytime prices very cheap, and even negative, and means the energy market often has more electricity in the middle of the day than we currently use.”
How to Maximise Savings with the Solar Sharer Offer
The core principle of the SSO is to encourage households to shift their electricity consumption to the free midday period. This means running high-drain appliances when the power is free.
1. Smart Appliance Scheduling
For households without solar, or those with small systems, the key is to program appliances to run between approximately 11 am and 2 pm (NSW/QLD) or 12 pm and 3 pm (SA). This includes:
- Washing machines and dishwashers
- Pool pumps and cleaners
- Electric vehicle (EV) charging
- Air conditioning (pre-cooling your home)
- Electric hot water systems (if on a controllable load)
Consider smart plugs and smart home systems that allow for precise scheduling. Even a single-person household shifting just 10% of their energy use to the free period could see a 9% reduction in their bills.
2. The Role of Home Batteries
While the SSO benefits all smart meter households, homeowners with solar panels and a home battery are in the strongest position to maximise savings.
If you have solar, your panels likely already cover much of your daytime usage. The free electricity period offers an additional opportunity: to charge your home battery from the grid for free during the midday solar abundance, rather than solely relying on your own panels. This is particularly advantageous on cloudy days or during winter when solar generation is lower. You can then use the stored, free electricity during expensive evening peak periods, significantly reducing your reliance on the grid and avoiding peak demand charges. For more on optimising your energy use, see our guide on How to Avoid Peak Demand Charges and Slash Your Time-of-Use Electricity Bills in Australia in 2026.
3. Electric Vehicle (EV) Charging
Electric vehicles are major energy consumers. The SSO provides an ideal window to charge your EV at no cost during the day. If you have a home battery, you can also charge your EV from the battery during peak times using power stored for free. For those with solar, integrating EV charging with your solar system can slash bills by over $1,500 annually. For detailed advice, read our guide: Optimise EV Charging with Solar in 2026: Slash Bills by $1,500+ Annually.
Understanding the Fine Print: Potential Drawbacks
While “free electricity” sounds universally beneficial, it’s crucial to understand the potential caveats:
- Adjusted Rates Outside Free Hours: To offset the cost of providing free electricity, retailers may adjust usage rates outside the free midday window, potentially increasing peak-hour rates (typically 4 pm - 9 pm). The Australian Energy Regulator (AER) will oversee the program to ensure fair pricing.
- Reasonable Use Cap: The federal government has introduced a “reasonable use cap” for the free electricity, initially set at 24 kWh per day. This is equivalent to an average five-person household shifting its total daily electricity use into the free period. For most households, especially those with solar, this cap is unlikely to be reached.
- Solar Owners’ Impact: If you already have solar panels, you might not see significant additional savings from the free electricity itself, as your panels likely cover your daytime needs. However, the ability to charge a battery for free from the grid is a valuable benefit.
Federal and State Battery Rebates in 2026
Investing in a home battery is a strategic move to capitalise on the Solar Sharer Offer and other time-of-use tariffs. Australia offers a range of incentives to make batteries more affordable.
Federal Cheaper Home Batteries Program
The federal government’s Cheaper Home Batteries Program provides an upfront discount on eligible small-scale battery systems (5 kWh to 100 kWh). This discount is delivered via Small-scale Technology Certificates (STCs), which your installer claims on your behalf.
Important Changes from May 1, 2026:
From May 1, 2026, the STC factor reduces from 8.4 to 6.8, and a tiered rebate structure is implemented, meaning larger batteries receive less proportional support.
| Battery Capacity (Usable kWh) | STC Factor Applied | Estimated Rebate per kWh (approx.) |
|---|---|---|
| 0 - 14 kWh | 100% | $252 |
| 14 - 28 kWh | 60% | $151 |
| 28 - 50 kWh | 15% | $38 |
| 50 kWh + | 0% | $0 |
Calculations based on an STC value of $37 after administrative costs, post-May 1, 2026.
For a standard 10 kWh home battery, the federal rebate is approximately $2,520 from May 1, 2026. A 14 kWh battery could attract around $3,528 in federal rebates. The overall program is funded until December 31, 2030, with further biannual reductions. For more details, consult our guide: Home Battery Rebates Available in Australia 2026.
State-Specific Battery Incentives (2026)
Many states offer additional incentives that can be stacked with the federal rebate:
- New South Wales: No direct upfront state battery rebate. The primary incentive is through Virtual Power Plant (VPP) participation, offering ongoing financial benefits.
- Victoria: The Solar Victoria battery loan program closed in May 2025. Victoria currently relies on the federal program for battery rebates. Solar Victoria does offer an interest-free loan of up to $1,400 for solar PV systems, and up to $8,800 for combined solar PV and battery packages.
- Queensland: No specific state-level battery rebate mentioned, but the federal rebate applies.
- South Australia: No specific state-level battery rebate mentioned, but the federal rebate applies.
- Western Australia: The WA Residential Battery Scheme offers up to $1,300 for Synergy customers and $3,800 for Horizon Power customers. Participation in a VPP is required. When combined with the federal rebate, total savings can reach $5,000 to $7,500.
- ACT: The NextGen Energy Storage Rebate provides up to $3,500 towards battery storage paired with solar. Federal STCs apply, and interest-free loans are available via the Sustainable Household Scheme.
Real-World Costs and Savings (2026)
As of 2026, the average cost of a 6.6kW solar system in Australia, after federal STC rebates, typically ranges from $5,000 to $6,000.
For a 10 kWh home battery system, before any rebates, the cost can be around $10,000 to $12,000. After the federal rebate (post-May 1, 2026, approx. $2,520 off a 10kWh battery), the net cost could be in the range of $7,500 to $9,500, depending on the model and installation complexity. In states like WA or ACT with additional state rebates, the net cost can be significantly lower.
A well-configured 10 kWh battery system can save a typical household between $1,200 and $1,800 per year on electricity bills by shifting solar energy from daytime export to evening self-consumption. The payback period for a solar and battery system can range from 4 to 8 years, with VPP participation potentially reducing this further. For more detailed analysis, refer to What is the Real Payback Period for a Solar and Home Battery System in Australia 2026?.
Bottom Line
Australia’s Solar Sharer Offer, launching July 1, 2026, presents a significant opportunity for households in NSW, SA, and SE QLD to reduce their electricity bills by leveraging free midday power. While it benefits all smart meter-equipped homes, those with existing solar panels and, particularly, home batteries, are best positioned to maximise savings. By strategically shifting energy consumption to the free hours and storing surplus energy in a battery, you can significantly reduce your reliance on the grid during expensive peak periods. Be mindful of potential tariff adjustments outside the free window and ensure your battery installation takes advantage of the federal Cheaper Home Batteries Program before the May 1, 2026, rebate reductions impact larger systems. Comparing electricity plans and understanding your energy usage patterns will be key to unlocking the full potential of this new initiative. For a deeper dive into your solar needs, check out Your 2026 Guide: What Size Solar System Do I Need & How Much Will It Cost in Australia?.